RP pushes for GSP treatment for goods

WASHINGTON – Philippine-made watches and carrageenan, a food additive extracted from seaweed, should be allowed entry into the United States duty free to improve living standards in Central Visayas and Mindanao and help eradicate "roots of terrorism through economic development," Filipino diplomats said.

Testifying before the United States Trade Representative’s GSP (Generalized System of Preferences) Review Commission on Friday, Ambassador Albert del Rosario sought GSP treatment for seven categories of Timex watches made in Central Vizayas saying that with the advent of global terrorism, US trade policy and its potential to alleviate poverty worldwide, is now more closely linked than ever to US foreign policy.

In his testimony Commercial Counselor Romeo Borillo said the grant of GSP to carrageenan will significantly improve the lives of families in Mindanao and elsewhere in the Philippines and "do much to alleviate the economic conditions that lead to political instability and terrorism."

Del Rosario said in the past 50 years to 1999 the Philippines exported annually to the United States $112 million worth of watches for which GSP treatments were being sought.

Since then watch exports have dropped successively and last year totaled $72 million.

He said the grant of GSP treatment to products produced by Timex in Central Visayas where its plant is located was needed to help maintain export production and ultimately employment in the region.

Representatives of Timex Corp. also gave their testimonies before the commission.

In his testimony Borillo said the grant of GSP to carrageenan from Philippine-produced seaweed will help US companies be competitive in the food additives market internationally.

Borillo said US companies have established factories in the Philippines which produce carrageenan for home export and removal of the 3.2 percent tariff would mean greater profitability for them.

The Philippines is considered the world’s largest producer of the Euchema variety of seaweeds accounting for about 80 percent of world supply in 2003 and about 85 percent in 2004.

Carrageenan is a commonly used food additive that is extracted from red seaweed. Among other things it is used as a thickening agent and to de-ice frozen airplanes sitting on tarmacs during winter storms.